Barron's MFQ

Ascent of the Fallen Stars

Barron's looks at the comeback of funds run by star managers who had stellar runs and then imploded. They discuss their strategies.

Editors Note: The initial story said Miller hadn't beaten his peers in more than 10 years. That's not the case. His five-year record beats 96% of his peers, though his 10-year record, one of the requirements for the funds discussed here, is at the bottom of the category, trailing 96% of its peers.

A surprising byproduct of this year's rally was the comeback of the star manager: investors with long spells of brilliant performance, whose funds then spectacularly imploded. Consider Bill Miller, whose Legg Mason Opportunity...